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MUMBAI, Oct 3 (Reuters) - Indian copper futures pared early session losses but continued trading weak on Friday as a strong dollar and demand worries pressured the red metal down.

Copper prices fell close to 6 percent in morning trade.

At 6.01 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was down 4.16 percent at 277.4 rupees per kg.

The dollar, which was poised for its biggest weekly gain in 16 years, sent metals tumbling. A stronger dollar makes dollar denominated metals expensive for holders of other currencies and caps demand.

Weak macro-economic data after a sharper-than-expected fall in U.S. auto sales, factory orders and non-farm payrolls in September fuelled concerns of slowing demand from the world's second biggest consumer of the metal.

"Strikes, supply disruptions are not supporting copper because a slowdown in demand from the construction and power industries is eroding confidence," said Debjyoti Chatterjee, associate vice-president, MAPE Admisi Commodities Pvt Ltd.

Peru, a leading global metals exporter, saw copper output fall in August from the same month a year earlier, but that failed to reverse sentiment.

Earlier in the week a strike by Xstrata's (XTA.L: Quote, Profile, Research) workers in Canada was also overshadowed by the global financial crisis.

The market also remained cautious and hoped for passage of the $700 billion financial industry bailout package through the House of Representatives later in the day.

DOLLAR WEIGHS

The strong U.S. currency and uncertainity in global markets also sent nickel, zinc and lead prices down.

Nickel prices traded at its lowest since April 2006 and at 6.01 p.m., the benchmark nickel for October delivery MNKV8 on the MCX was down 3.78 percent at 726 rupees per kg.

Zinc prices also went spiralling down and hit the initial lower circuit on Friday.

At 6.01 p.m., benchmark October lead MLDV8 was down 1.89 percent at 80.45 rupees and October zinc MZIV8 on the MCX was down 4.59 percent at 74.75 rupees a kg .